It is worth noting that some of these aspects, such as the de facto tax haven situation, may change in the future. However, such changes are more likely to occur in the short to medium term for sectors like sports betting, while others like casinos, Esports and poker appear to have a more stable outlook.
Marketing practices have undergone notable changes as the IBJR has voluntarily adopted regulations like those implemented by the most prominent institution in the marketing industry for self-regulation, CONAR. It is imperative to highlight that incorporating an 'ethics layer' into the industry's marketing activities also plays a pivotal role in nurturing a collective reputation and managing public relations across Brazil and the broader Latin American region.
“Long-term marketing flexibility should continue to present opportunities in Brazil”
Notably, specific brands, including some of considerable stature, had, in recent years, embraced somewhat puerile and even vulgar marketing initiatives and campaigns. This was often driven by the understanding that anything was permissible from a legal perspective – an unwritten rule of sorts.
Additionally, it is crucial to note that these rules were voluntarily adopted by brands affiliated with the IBJR. While some form of marketing regulations is anticipated in the long run, it's essential to recognise that Brazilian society remains relatively open-minded and even tolerant regarding elements such as humor, nudity and what might be described as vulgar or puerile in marketing communications. This level of acceptance often contrasts with certain countries like the UK and specific regions within the US.
Long-term marketing flexibility should continue to present opportunities in Brazil. Additionally, game certifications, such as those for online or even potentially physical slot games, remain absent from discussions with the public sector.
The existence of certification entities within our industry, including well-known brands like GLI and BMM, largely eludes those outside the industry. Integrating this aspect, in line with international standards, could further enhance the industry's reputation.
“Living costs in Brazil are considerably more attractive than in first-world countries, particularly with the exchange rate of the Brazilian Real (BRL) hovering around 5 to 1 against the USD”
It is not anticipated that iGaming developers specialising in slot games or live casinos will face the same stringent certification requirements in Brazil as they do internationally, at least not immediately.
While operators continue to rely on licenses from jurisdictions like Malta and the UK, game licensing may remain a regulatory requirement. Brazil's primary focus is on taxation and marketing, with less emphasis on comprehending the technical nuances of the industry, such as certification. This could lead to more cost-effective operations in the country, contingent upon reasonable taxation rates in the region.
The potential for establishing regional offices for gaming operations targeting Brazil and other Latin American and global markets is worth considering.
Living costs in Brazil are considerably more attractive than in first-world countries, particularly with the exchange rate of the Brazilian Real (BRL) hovering around 5 to 1 against the USD. Even if the BRL were to strengthen to 3 or 2.5 to 1 against the USD, living in Brazil would likely remain more cost-effective than in established industry office hubs like Malta, Gibraltar, Portugal and London.
Many companies operating in the region often employ staff with a focus on the Brazilian market, making Brazil a viable destination for office locations.
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* Citations and references are available in the full report
